MUMBAI: After receiving approval from the Foreign Investment Promotion Board (FIPB) for increasing the foreign investment limit from the current 49 per cent to 74 per cent, multi system operator (MSO) Hathway Cable and Datacom has received a nod from the Reserve Bank of India (RBI) as well.
The RBI granted its approval to the MSO for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs, through primary market and stock exchanges up to 74 per cent of the paid up capital of the company under Portfolio Investment Scheme post approval of the same by FIPB.
“This would be subject to the Regulation 5(2) of FEMA Notification No.20/2000 RB dated May 03, 2000 (as amended from time to time) issued under FEMA, 1999,” the notice said.
RBI has also advised all custodian banks that since the foreign share holding by FIIs/RFPIs in Hathway have gone below the revised threshold limit stipulated under the extant FDI policy, the restrictions placed on the purchase of shares vide its letter dated 20 February, 2015 are withdrawn with immediate effect and hence equity shares of Hathway can now be purchased through primary market and stock exchanges.
